IRS Bank Levy
IRS Bank Levy-
Follow These 5 Steps
to Get it Removed
A bank levy from the IRS is bad news. Worse than a lien, a levy will freeze the money within a bank account, and any amount less than what the IRS believes you owe will be completely inaccessible. Your debit card will not work, and outstanding checks will go unpaid, even if written before the levy was placed.
This process will continue for 21 days, at the end of which time, the bank will be expected to surrender the levied money. If that is insufficient to cover the back tax debt amount, the IRS will then be able to seize personal properties like houses, cars, and retirement accounts, and sell them to recover the debt.
Indeed, this is serious business. So let's say you are in the midst of an IRS bank levy. Follow these 5 steps to get it removed.
Step 1: Pay off the levy completely. This is the fastest and surest way to get a levy lifted and to have your banking access restored.
Step 2: Read through the levy paperwork carefully and make sure that it is on an appropriate debt.
Get ahold of the levy judgment paperwork. This is easy enough to do; the bank where the levy was administered has to notify you about the levy action, and is also required to provide that paperwork upon request.
Step 3: Gather your paperwork. If in Step 2 you found that the levy has been paid in its entirety, or if you have already set up an approved payment plan on which you've made regular payments, you'll need to be able to prove that to the IRS's satisfaction. If the levy is appropriate, you'll want to get your finances and budget in one place so that you can determine the best payment plan for your means.
Step 4: Obtain and file the proper forms. Form 911 (a bit ironic a number) is the "Request for Taxpayer Advocate Service Assistance" and is used when you have having payment issues. Form 9423, "Collection Appeal" or Form 12153, "Application for Collection Due Process Hearing" are used to review and protest the levy itself. All of these forms can be obtained at the irs.gov website.
Work out a written payment plan with the IRS for the money due. The Government is likely to allow you to draw funds from your frozen bank account if they think payment is forthcoming. There will still be penalties and interest charged, but the IRS prefers something over the long haul rather than nothing in the short-term.
Step 5: Resolution. Either you will have your "day in court" because of the appeals process, or you will have to make payments on a payment plan. The sooner regular payments start coming in, the sooner the levy will be removed.
Reason with the IRS and prove to them that they made a mistake when they placed the levy on your account. This will require extensive time researching the laws and rules of the bureaucracy and making multiple copies of your tax filings. It will also require expert communication skills whether it be by phone or in writing. You will most likely be making multiple trips to the Post Office, UPS, Fed Ex, etc. if you go the writing route.
Throw yourself on the mercy of the IRS by showing them evidence of your inability to pay. This could take the form of other bill collection letters, a notice of eviction, rescinded service contracts, repossession threats, utility shut off papers, etc. It's unlikely that they'll be moved to sympathy but they will have to remove the levy because you've clearly demonstrated your inability to pay.
Dealing with a bank levy is a difficult situation, and one you probably would not like to go through alone. If you need assistance in such matters, please don't hesitate to contact Optima Tax Relief.
The experts at Optima Tax Relief will work with you to craft a plan to remove that bank levy and settle your outstanding balance with the IRS. Typically this can be done in as little as 24 - 48 months. With the professional guidance and support of Optima Tax Relief, you will design a manageable monthly payment plan customized for your situation.
For more information regarding Tax Information for Retirement Plans contact
Viktor Ivica Having passed the CPA examination and working as a staff accountant in some of the largest companies in the United States prior to graduating from law school, Viktor Ivica's background uniquely qualifies him to represent clients in sophisticated tax controversy and tax litigation matters.
In his years as a tax specialist at Optima Tax Relief, Viktor has applied his negotiating skills in IRS audits of individuals and businesses. In the field of taxation, there is no substitute for experience.